Former FTX general counsel Can Sun, who played a pivotal role as a key witness in the Sam Bankman-Fried (SBF) trial, is teaming up with other former FTX executives to create a new cryptocurrency exchange.
As reported by the Wall Street Journal (WSJ), the new exchange will have the support of Trek Labs. This is a Dubai-based startup that recently obtained a license from the UAE cryptocurrency regulator to operate in the region.
In order to put the plan into practice, Trek Labs is looking for investors interested in purchasing a 10% stake in the company for US$100 million. The initiative also brings together names like Armani Ferrante, ex-FTX and ex-Software Engineer at Alameda Research, the exchange’s sister company.
Former FTX execs to launch Backpack Exchange
Today, Ferrante serves as CEO of the Trek holding company in the British Virgin Islands. Additionally, he oversees partner company Backpack, which focuses on designing and operating cryptocurrency wallets. Former FTX deputy legal manager Claire Zhang, who is Ferrante’s wife, is also part of Trek’s executive team.
Both Sun and Ferrante testified against Bankman-Fried at the trial that convicted him on seven of the seven counts. As Sun said at trial, he resigned from his position after discovering the mismanagement of client funds.
Sun and Ferrante told the press that they intend to incorporate the lessons learned from the FTX failure into the core of Backpack Exchange, the new exchange they intend to found. According to the announcement, the new exchange will implement Backpack’s technology, allowing users to hold funds in their own “self-custodial” cryptocurrency wallets.
“In a post-FTX world, you need trust and transparency to create a true alternative to other players,” Sun said in the announcement.
Trek Labs and former FTX executives intend to launch Backpack Exchange in beta this November. The group’s goal is to offer users a safer and more transparent platform built on lessons learned from the FTX debacle.
The news comes as FTX tries to get back on its feet. As CriptoFácil reported, the investment company Proof Group, which won a bid to acquire the “remains” of the bankrupt cryptocurrency lending company Celsius Network, would be interested in acquiring the cryptocurrency exchange FTX.
An anonymous source said the investment firm is exploring potential partnerships with other entities in order to secure the purchase of FTX.